business
'Liquidity challenges' persist in Islamic banking sector in Bangladesh: Fitch Ratings
The Islamic banking sector in Bangladesh, a significant part of the country’s wider banking sector, continues to face liquidity challenges, according to Fitch Ratings, the global credit agency.
The situation however is improving, underpinned by central bank support in the form of the Islamic Bank Liquidity Facility and Mudarabah Liquidity Support and still-notable public demand for Islamic deposit products, Fitch said in a non-rating action commentary last week.
Islamic banks held 25.3% of all domestic industry deposits at end-1H23, albeit down from 28.2% at end-1H22, it added.
Read: Bangladesh Bank relaxes rules for EFPF loan payment
Islamic banks in Bangladesh faced sizable customer deposit outflows in 2022-1H23 and lower liquidity buffers than conventional banks amid reports of loan irregularities.
Islamic banks’ excess liquidity, defined as total cash reserves minus required reserves with the central bank, declined significantly by 66.6% yoy (Tk 9.82 billion) at end-1H23, said Fitch.
However, excess liquidity has since improved, with a 12.7% quarterly rise.
In contrast, deposit growth is slowing. Islamic banks’ total deposits grew by only 3.8% yoy as of 1H23, a significant fall from the 12% yoy growth of 1H22, it added.
Read: Bank loan interest will go up in future: Salman F Rahman
Bangladesh had the eighth-largest Islamic banking market globally at the end of 2022, with total assets of Tk 4,970.7 billion (US$45.3 billion), ahead of Indonesia, Bahrain, Pakistan, Egypt, Jordan, and Oman, based on data from the Islamic Financial Services Board. The market share, based on industry loans, is rising and reached 29.1% at end-1H23 (end-1H22: 28.5%).
However, the industry has significant untapped potential, as 62% of the Bangladeshi population does not have an account at a financial institution, whether conventional or Islamic, according to 2021 World Bank data. Bangladesh has the third-largest Muslim population globally, with sizable segments being sharia-sensitive, the credit rating company observed.
Many conventional banks are increasing their offering of Islamic products, either by opening new Islamic branches or windows or by converting into full-fledged Islamic banks. This is driven by customer demand and more lax prudential requirements.
Islamic branches and windows of conventional banks are expanding, with an 8.2% share of Islamic banking deposits as of end-1H23 (1H22: 7.1%), with the remaining 91.8% held by full-fledged Islamic banks, it said.
Read: Islami Bank holds discussion on Shari’ah Compliance in banking operations
Islamic banks in Bangladesh can receive customer deposits based on either mudaraba (a profit-and-loss sharing contract) or wadiah (a safe-keeping contract). Mudaraba-based deposits accounted for more than 85% of customer deposits at Islamic banks at the end of 1H23.
Fitch has not observed Islamic banks passing on losses or not paying profits to depositors. Passing losses can increase reputational risk and may lead to customer deposit outflows.
The company also expected that Bangladesh Bank would not let depositors’ bear losses, as this would shake investor confidence in the banking system. Financing based on profit and loss (mudaraba and musharaka) was less than 1% of total financing.
The Islamic finance industry in Bangladesh continued to face key structural impediments. These include a lack of sukuk and other sharia-compliant investment options, gaps in human capital development, a lack of unified shariah rulings, and an Islamic finance regulatory framework that requires an update.
In general, the banking sector’s balance sheets, governance, and regulatory quality are weak. The central bank has taken steps to improve governance at public-sector banks, including the appointment of observers to bank boards, but progress has been slow, the company said.
FBCCI leader Jibon Deb Nath obtains D.Litt degree from France’s Thames International University
Dr. Joshoda Jibon Deb Nath, vice president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), has been awarded the prestigious Doctorate of Literature (D.Litt) by The Thames International University of France.
This esteemed recognition was bestowed upon Dr. Deb Nath in honor of his exceptional contributions to the nation's economy. The announcement was conveyed through a letter from The Thames International University on Thursday.
Dr. Joshoda, a visionary entrepreneur, has played a pivotal role in advancing the Digital Economy landscape in collaboration with the government. His journey commenced in 2001 when he founded Technomedia Limited, an ICT-based company.
Read: FBCCI president says they are against dishonest businessmen
Over the years, he strategically expanded the company's presence in the banking sector, securing the distributorship of the Systemedia Division of NCR Corporation (USA) in 2005.
Technomedia Limited (TML) has firmly established itself as a trusted vendor and service provider in the Financial Sector, particularly excelling in MICR Encoded Cheque processing for the Banking and Financial industry in Bangladesh.
TML's impressive portfolio encompasses ATM booths, Note Sorting Machines, Note Binding Machines, Banking Software, Online Check Clearing Software, and Security Services, catering to banks nationwide. Remarkably, the company is responsible for servicing approximately 70 per cent of the country's total ATM needs.
Read: Japan wants to increase investment in Bangladesh: Japanese envoy told FBCCI
Dr. Deb Nath, whose academic achievements included a PhD in Finance and Banking, has received numerous accolades, including the prestigious Bangabandhu Industrial Award and recognition as a Commercially Important Person (CIP) by Bangladesh government.
In addition to his exceptional professional journey, Dr. Deb Nath actively engages in various social initiatives, underscoring his versatile and impactful leadership profile.
Read more: Dependence on any market will put Bangladesh at risk: FBCCI President
Best Platforms to Sell Photos Online and Make Money
Passion for photography transcends mere snapshots; it's a journey of capturing emotions, stories, and moments frozen in time. In today's digital age, this passion can also be a gateway to a rewarding online income stream. The scope of earning by selling photos online is offering photographers a chance to turn their creativity into a lucrative revenue source. It even holds some exciting prospects for shaping up a fulfilling career. Let’s get introduced to the most popular platforms to sell photos online and make money.
7 Best Platforms to Make Money by Selling Photos Online
Adobe Stock
To participate in Adobe Stock content creation, contributors must meet a minimum age requirement of 18 years. For those new to Adobe, they can visit the Adobe Stock Contributor portal (https://contributor.stock.adobe.com) and click the "Join Now" button to create an Adobe ID.
Contributors from Bangladesh should use tax documents like W-8BEN or W-8BEN-E.
Once registration is completed, contributors can start submitting their content to Adobe Stock. However, if the pictures are of a recognized person or someone else's personal property, the contributors’ signature will be required to confirm ownership.
The site pays a 33 percent royalty for each stock image. Contributors typically earn a minimum of USD 0.33 (BDT. 36.23) [USD 1 = BDT 109.7756] to a maximum of USD 21.12 (BDT. 2,318.46) [USD 1 = BDT 109.7756] per image. In this way, they can request payment if the deposit is a minimum of 25 USD (BDT. 2,744.39) [USD 1 = BDT 109.7756].
Read more: 5 Smartphones Around 15000 TK for Best Display, Gaming, Photography
Shutterstock
Applicants must be at least 18 years old to get started. To register, they can visit shutterstock's official website and sign up for a Shutterstock contributor account.
Once registered, contributors can start uploading their content. To activate their contributor status, they need to submit several photos. The content will be reviewed by expert team members, and after approval of the first piece of content, the account becomes fully active.
Contributors must include uploading only their original work or content for which they hold copyright. Bangladeshi contributors must submit their tax information through W-8BEN forms.
Earnings are divided into six levels, ranging from 15 to 40 percent based on yearly image licenses or downloads.
For instance, if a customer buys the USD 111.20 package for 30 photos, contributors who receive a 15 percent royalty here will earn 56 cents (BDT 61.44) [USD 1 = BDT 109.7756] per image. In this manner, they can request a withdrawal only after accumulating a minimum of USD 25 (BDT 2,744.39) [USD 1 = BDT 109.7756].
Bangladeshis can choose Payoneer to withdraw the amount and bring it to their local bank account.
Read More: Six-week long ‘Bangladesh in Frames’ photography exhibition inaugurated in Mexico
BGMEA calls for collaboration to create enabling environment for responsible business practices
President of Bangladesh of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan has emphasized the critical importance of addressing human rights and environmental concerns in today's interconnected global economy.
Highlighting Bangladesh's vision for sustainability, President Faruque Hassan outlined BGMEA's Sustainability Vision 2030, which includes ambitious targets for reducing carbon emissions, sustainable raw material usage, groundwater usage, chemical usage, energy consumption, and deforestation.
The vision also emphasizes inclusive work practices, gender equality, and good governance, with an online data platform to monitor progress.
Speaking as the chief guest at a seminar on Thursday, he stressed the need for learning about due diligence protocols, capacity building, and transparency to ensure future business success.
Bangladesh-German Chamber of Commerce and Industry (BGCCI) hosted the seminar on German Due Diligence Supply Chain Act in Dhaka.
The event brought together distinguished industry leaders, policymakers, and stakeholders to discuss the significance of human rights and environmental due diligence in the global business landscape, BGMEA said on Friday.
Dr. Michael Klode, Project Manager, Programme for Sustainability in the Textile and Leather Sector (STILE), GIZ gave a presentation on German Due Diligence Supply Chain Act, focusing on different aspects of the new law.
M. Maksud, President, and Dr. Md. Kamruzzaman, Senior Vice President of BGCCI also spoke at the seminar. BGMEA's commitment to supporting manufacturers in adapting to new regulations was highlighted with the establishment of the 'Responsible Business Hub.'
This dedicated unit, supported by GIZ, serves as an information center, providing training, awareness, and guidance on Human Rights and Environmental Due Diligence.
The President also called upon stakeholders, particularly buyers, to consider the cost of compliance and collaborate to share the burden, ensuring competitiveness and fairness.
He emphasized the need for uniformity among different international legislation to avoid conflicting obligations.President Faruque Hassan stressed the importance of continuous attention and collaboration among supply chain stakeholders to create an enabling environment for responsible business practices.
UNDP resident representative meets BGMEA president to discuss collaboration
Stefan Liller, Resident Representative of UNDP Bangladesh, met with Faruque Hassan, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at the latter’s office in Uttara, Dhaka on Thursday.
Sarder M Asaduzzaman, Assistant Resident Representative, and Debashis Roy, Private Sector Partnership Specialist were also present on the occasion.
During the meeting, they discussed potential collaboration between UNDP and BGMEA in promoting sustainability, skills development and workers’ wellbeing in the readymade garment industry of Bangladesh.
Biman resumes direct flight to Guangzhou
Biman Bangladesh Airlines resumed its direct flights between Dhaka and China’s Guangzhou on Thursday.
Biman flight BG366 with 146 passengers departed Hazrat Shahjalal International Airport at 10:20 pm and will arrive in Guangzhou at 4:00am (local time) on September 15 (Friday), said Md Siddiqur Rahman, director (admin) of Biman Bangladesh Airlines.
Read: Bangladesh Biman Corporation (repeal) Bill 2023 passed in JS
Following the resumption, there are now six weekly round-trip flights on the route, with a capacity of more than 900 passengers, he added.
Biman flights will depart from Dhaka every Sunday, Tuesday and Thursday at 10:20 pm for Guangzhou and every Monday, Wednesday and Friday from Guangzhou to Dhaka at 05:30 am (local time).
Read: Biman’s Dhaka-Narita direct flights will boost Bangladesh-Japan trade, relations: BCCIJ president
Biman offered a discount on the occasion of the resumption of direct flights on the route. A 15 percent discount on base fare by using promocode HAPPYCAN23 on ticket purchase from Biman's website www.biman-airlines.com and mobile apps.
The passengers can purchase their tickets for this route from Biman's commercial website www.biman-airlines.com, mobile apps, any Biman sales centre, Biman call centre 01990997997 and Biman-authorised travel agencies.
Read: Govt will decide on ground handling at Dhaka airport’s third terminal and Biman is ready: CEO
The direct flight on Dhaka-Guangzhou-Dhaka route was suspended from March 16, 2023.
Adani Wind receives certification for India’s largest turbine
Adani Wind, the wind energy solutions division of Adani New Industries Limited (ANIL), announced that its 5.2 MW Wind Turbine Generator (WTG), which is India’s largest, has received type certification from WindGuard GmbH.
In a recent media statement, it said the certification enables Adani Wind to start series production for global markets.
The certification under IEC System for Certification to Standards Relating to Equipment for Use in Renewable Energy Applications (IECRE) affirms that the Adani Wind’s 5.2 MW WTG meets highest quality and safety standards and provides international recognition to this turbine.
The type certification acknowledges Adani WTG’s conformity with the globally recognized IEC 61400 series standards and regulations for design, testing and manufacturing. WindGuard carried out the testing of the WTG prototype, installed in Gujarat’s Mundra.
Mr Vneet Jaain, director, Adani New Industries Limited, said, the type certificate reaffirms the quality and robustness of our 5.2 MW WTG platform built to bring down Levelized Cost of Energy (LCOE).
The certification is a boost to our endeavor of making India the global manufacturing hub for renewable equipment, he added.
Mr Milind Kulkarni, Chief Operating Officer (COO), Adani Wind, said, “The certification is a testament to our R&D efforts focused on enabling higher Annual Energy Production (AEP) of wind power plants and enhancing the profitability for customers. We thank our team for their commitment and unwavering focus on leveraging technology to enable affordable, reliable, and sustainable power for all.”
Steel has huge potentials for exports to Commonwealth countries: RRM Group Chairman
Chairman of RRM Group and Vice President of Bangladesh Steel Manufacturers Association Dr. Suman Chowdhury said on Thursday that the steel industry is already over capacity of 5 to 6 million tonnes of steel, which can be exported to Commonwealth countries.
"It can be a potential item for exporting. Industries have already set up many factories and increased capacity seeing earlier growth," he told a seminar in Dhaka.
The seminar was held during the Commonwealth Trade and Investment Forum that ended on Thursday in Dhaka with the promise of enhancing cross-border investment to flourish respective economies. Bangladesh hosted the conference for the first time in collaboration with the Commonwealth Enterprise and Investment Council (CWEIC). Prime Minister Sheikh Hasina inaugurated the programme on Wednesday.
DSE, BGMEA join forces to support RMG enterprises in capital market
The Dhaka Stock Exchange Ltd. (DSE) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have signed a memorandum of understanding (MoU) to foster collaboration and support the country's readymade garment sector in accessing capital market services.
Under this MoU, DSE and BGMEA aim to assist RMG enterprises in raising capital from both domestic and international sources by leveraging the various products and features offered by the capital market platform provided by DSE.
Faruque Hassan, President of BGMEA, and M. Shaifur Rahman Mazumdar, Managing Director (Acting), DSE signed the MoU on behalf of their respective organizations at BGMEA Complex in Uttara, Dhaka on September 14.
BGMEA Vice President Shahidullah Azim, Director Mijanur Rahman, Chair of BGMEA Standing Committee on Press, Publication and Publicity Shovon Islam, Chair of BGMEA Standing Committee on Trade Fair Mohammed Kamal Uddin, Chair of BGMEA Standing Committee on UD-Woven & Knit Md. Nurul Islam were present at the MoU signing ceremony.
Professor Dr. Hafiz Md. Hasan Babu, Chairman, DSE; Md. Shakil Rizvi, Director, DSE; and Sharif Anwar Hossain, Director, DSE were also present.
DSE and BGMEA have agreed to jointly organize training sessions, seminars, and workshops with a particular focus on entrepreneurship for RMG companies.
These programs will address key areas such as corporate governance, capital restructuring, and fundraising, said the BGMEA.
Australian High Commissioner, BGMEA President discusses trade opportunities
Australian High Commissioner to Bangladesh Jeremy Bruerhas on Thursday met President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan and discussed areas of opportunities on trade front.
BGMEA Vice President Shahidullah Azim, Directors Abdullah Hil Rakib, Barrister Vidiya Amrit Khan, Neela Hosna Ara, Chair of BGMEA Standing Committee on Press, Publication and Publicity Shovon Islam, Chair of BGMEA Standing Committee on RSC Nafis-Ud-Doula, and Chair of BGMEA Standing Committee on Trade Fair Mohammed Kamal Uddin attended the meeting.
Mahbub ur Rahman, CEO of HSBC Bangladesh; Joshua Gacutan, Second Secretary (Economic); and Nitol Dewan, Trade and Economic Development Manager at the Australian High Commission, were also present at the meeting held at BGMEA Complex in Uttara, Dhaka.
Also read: BGMEA urges Kontoor Brands to step up garment sourcing from Bangladesh
The meeting was marked by fruitful discussions on mutual interests and potential collaborations in grasping trade opportunities between Bangladesh and Australia.
Both sides had discussions regarding a range of topics, including avenues for enhancing bilateral trade between the two nations.
They also delved into the means of strengthening partnership and expanding trade and investment in areas of high potential.
One of the key points discussed in the meeting was the continuation of Australia's duty-free market access to Bangladesh in the post-LDC period, for which BGMEA President Faruque Hassan expressed his gratitude.
Bangladesh's keen interest in the Australian market, particularly in exporting high-end fashion items, and the potential to increase its imports of cotton and wool from Australia for its readymade garment sector were also highlighted in their discussion.
Faruque Hassan extended his appreciation to Australia for its ongoing support in Bangladesh's journey towards development, said the BGMEA.
Also read: South Korean Ambassador, BGMEA President discuss ways to boost trade, investment
He highlighted the significance of Australia as a promising market for Bangladesh's apparel exports.
He also underscored the importance of fostering industry connections between Australian suppliers of raw materials, such as cotton and wool, and Bangladesh's RMG sector.
Faruque Hassan thanked the Austrian High Commissioner for extending his cooperation in organizing the first-ever Bangladesh Apparel Summit in Melbourne on July 18 this year.
The summit played an important role in bringing closer a wide range of stakeholders of the RMG industry including buyers, retailers, suppliers, consumers, development partners and others, creating a good opportunity for fruitful discussions.
Also read: Concerted efforts needed for transition to circularity: BGMEA President